Precisely defined by Gartner as “the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment,” IoT can more generally (and correctly) be thought of as networks of connected devices that provide data without human interaction. A liberal definition would allow human interaction, and include smartphones, wearables, etc.
IoT is very complex, but it is also very real, and well beyond the hype stage. A recent study by the McKinsey Global Institute postulates that "the hype may actually understate the full potential of the Internet of Things." To be sure, IoT is here now, albeit early stage, and promises to provide tremendous value. As the cloud, mobility and big data analytics collide to spawn a wealth of digital transformation possibilities, IoT represents the cutting edge of innovation in business today.
Check out what these industry thought leaders have to say about the state of IoT, and its potential for transformation:
- A study by the McKinsey Global Institute predicts that the Internet of things will in the year 2025 create between nearly $4 trillion to $11 trillion in economic benefits globally.
- IDC predicts that within the next five years, 90 per cent of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending.”
- Cisco predicts that there will be 25 billion Internet-connected devices by 2015 and 50 billion by 2020.
- According to Gartner, 4.9 billion connected things will be in use in 2015, up 30 percent from 2014, and will reach 25 billion by 2020.
- By 2020, according to the World Economic Forum, more than 5 billion people will be connected, not to mention 50 billion things.
- TechNavio predicts that the IoT market will grow at a CAGR of 31.7% from 2014 – 2019.
- GE estimates that convergence of machines, data and analytics will become a $200 billion global industry over the next three years.
SAP customers are well positioned to cash in on IoT
More CIOs are trying to find ways to exploit their enterprises’ vast data stores for profit, hoping to create tangible business value by developing revenue-generating data- and analytics-based products and services. Over the past decade, CIOs and their IT shops have shifted from the maintenance and operations model to brokers of services in support of business objectives. Broadly stated, this is the great promise of IoT.
SAP solutions for the Internet of Things provide everything businesses need to generate data-driven intelligence from connected things, people and devices.
Announced at SAPPHIRE Now in May, SAP HANA Cloud Platform for the IoT provides the infrastructure to enable businesses to securely tap into a network of millions of connected devices. Building on its existing data and application services, which include predictive analytics, telematics, geo-location and more, the newly launched IoT services from SAP and select SAP partners enable the device cloud for faster delivery of IoT business value.
The latest release of SAP HANA, announced June 16, delivers new capabilities that help customers connect with the Internet of Things (IoT) at enterprise scale, manage big data more effectively, further extend high availability of data across the enterprise and develop new applications. More specifically, Service Package Stack 10 (SPS10) for the SAP HANA Platform features new remote data synchronization capabilities that enable organizations to synchronize data between the enterprise and remote locations at the edge of the network via the popular SAP SQL Anywhere suite. In addition, SPS10 enables businesses to harness big data using expanded smart data integration capabilities of SAP HANA to the latest Hadoop distributions from Cloudera, Hortonworks and MapR. Last, but by no means least, SPS10 delivers new high availability and disaster recovery capabilities to help ensure data center readiness and support for always-on, mission-critical applications.
Business leaders on the confluence of business and technology:
Technology is transforming business in more ways than we ever imagined. Separating one from the other is increasingly difficult. Listen to what these business leaders have to say about the interrelatedness of business and technology:
“Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without talking about the other.” - Bill Gates
"If you went to bed last night as an industrial company, you're going to wake up today as analytics software company." - Jeff Immelt, CEO of GE
“The car is becoming the ultimate technology product, and we are becoming more of an information company.” - Mark Fields, CEO of Ford Motor Company
“As an industry we’re still at an exploratory stage of what the Internet of things is going to mean and get our heads around it […] But its going to turn every enterprise into a technology company.” - Quentin Clark, Chief Technology Officer of SAP
Contact NTT DATA today to learn more about how SAP solutions for IoT can help reimagine, reinvigorate and reposition your business for sustainable, innovation-driven success.